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Report: Pakistan’s Budget for 2024-25 Meets IMF Requirements

Pakistan’s Budget for 2024-25 Meets IMF Requirements. Pakistan’s 2018 fiscal budget has been approved by the International Monetary Fund (IMF), although it has recommended that tax exemptions worth over Rs 3 trillion be scrapped. The proposal is part of Pakistan’s efforts to secure a $6-8 billion loan from the IMF to boost the country’s foreign exchange reserves. A staff-level agreement should have been reached between Pakistan and the IMF by June or July.

The Federal Board of Revenue (FBR) has set an ambitious tax collection target of over Rs 3.8 trillion to meet its fiscal targets. To curb tax evasion and ensure more efficient revenue collection, FBR plans to use advanced technology. A notable political development in Pakistan is the agreement between various parties not to politicize the IMF program.

This agreement will facilitate the implementation of the program at the federal and local levels, guaranteeing that the IMF’s recommendations are implemented as intended. Pakistan has earmarked Rs 18.877 trillion for FY 2025, which is a 29 percent increase in current expenditure over the previous year. This budget includes several measures to support national development projects and manage economic problems.

To raise non-tax revenue, the government plans to raise the Petroleum Development Levy to Rs 80 per litre, aiming to raise around Rs 1.3 trillion. The additional funds from this levy will be used to support various government initiatives and help reduce the fiscal deficit.

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